Vietnam reduces import tax on fuel oil

Vietnam has reduced the import tax on mazut fuel oil. The tax has been reduced from 35% to 30% while duties on other petrol products remain unchanged at a range of 20 to 25%. According to media reports, the Ministry of Finance’s decision, effective June 5, is aimed at stabilizing retail oil prices in the local market in the face of increasing global oil prices. It follows requests from several oil importers for permission to raise oil retail prices, which the ministry declined to do. Meanwhile, Vietnamese traders have asked the Ministry of Industry and Trade, as well as the Ministry of Finance, to raise the domestic retail price of petroleum products by 500 dong (US$0.03) per liter in line with global prices, which have risen in the past recent months. (June 5, 2009)